Lawyer support for renunciation? What happens in the interview, how to prepare, etc

[happywife1223]

Hi,

I'm planning to renounce US citizenship. Haven't lived there in 35+ years. I have net worth of 1.1m according to the calculations, so I'm under the 2m limit and avoid exit tax / complicated situation. I have two other citizenships and am getting old. I'm just.... done.

I just watched a lawyer's presentation - and they charge 6-10,000 GBP to support you in renouncing, and that price is assuming you are compliant for 5 years tax returns (I am). They told a big scare story about not being allowed back in the country if the DoJ believe that you are leaving for tax purposes (as determined by the interview at the consulate).

The thing is, I want to be able to holiday and travel to the US. I love the country, the wilderness, the PNW, the people, the variety of culture/food... I just don't plan to ever spend more than 30 days there in a calendar year. I have no family there. But, being barred would be a pretty big deal for me.

1. What questions are asked to determine whether you are leaving for tax purposes or not? How do they 'catch' you on that?
2. Is it advisable to hire legal support, to prepare for the interview? 6-10k GBP seems... Excessive?! for a 1 hour interview?
3. how many people are barred for entering due to the perception that they are doing it to avoid tax? Surely this isn't me. I'm not the facebook founder guy or tina turner. I'm just... old and tired

I'm not adverse to paying where help is needed, but I'm curious to hear any opinions or experience on the matter.

Thank you!

 

[stephendisraeli]

@happywife1223

how many people are barred for entering due to the perception that they are doing it to avoid tax?

Two, between 2002 and 2015.

And the decision cannot be based on "perception". The Reed amendment requires the purpose to be determined by the attorney general.

Have you asked different lawyers for a quote? What is the 6k GBP number based on?

 

[happywife1223]

@stephendisraeli Thanks for this feedback. So there are only two people have have been barred under the Reed amendment? I'll need to look more into that.

My next step is to search around and get different lawyers for a quote. I was only planning on accountant help to submit my paperwork / final tax return documentation - but I do think some professional help is a good idea to get the timing right. I also think it could be messy (timing wise) related to getting in line for an actual appointment and aligning that with the IRS tax documents (eg COVID delays)- I'm not sure what the timeline is at my local embassy.

The webinar presented that renunciation for a typical client is 6-10k GBP, but some can push beyond that. They didn't go into details about what exactly you get for that, but they explained how cases can vary depending on your net worth, filing history, etc.

 

[stephendisraeli]

@happywife1223

So there are only two people have have been barred under the Reed amendment?

That is the number I have found. Evidently, the person needs to explicitly admit giving up US citizenship to avoid taxation for this to be happen.

The webinar presented that renunciation for a typical client is 6-10k GBP, but some can push beyond that.

Is this webinar from the same party that will also provide the legal services for renounciation? If yes, I would consider the webinar to be advertising, not information.

 

[happywife1223]

@stephendisraeli Thanks, food for thought! Yes, webinar was presented by the lawyers who offer the service that I mentioned in my first post. It was definitely advertising - pretty light on actual information, lots of scare tactics, lots of surface level details without the nitty gritty. But definitely made me think that yes, maybe I should get some professional legal advice before the next steps.

Thanks for your thoughts